D NAME: CONTINUOSIY SAVE YOUR FILE On 1 July 20X2, King Ltd, purchased SS00,000 bonds of Princess Inc. at par. The bonds pay 6% laterest annually on June 30. The bonds mature on 30 June 20X9. King has a lune 30 yearend. At 30 June 20x3, King assessed that the credit risk of the Princess bonds had significantly increased and that the expected credit losses were estimated to be $22,000. 4 marks Required: 1. Prepare journal entries for fiscal 20x3 related to these bonds 2. At 30 June 20X4, King assessed that the Princess bonds were now credit-Impaired due to an adverse change in technology within Princess's industry. The present value of the estimated future cash flows was $425,000. Prepare the journal entries for 20X4. 1. Given the facts in requirement 2, prepare the journal entry to recognize interest revenue for 20X5. 4 marks 3 marks Requirement 1 ACCOUNT DESCRIPTION DEBIT CREDIT D NAME: CONTINUOSIY SAVE YOUR FILE On 1 July 20X2, King Ltd, purchased SS00,000 bonds of Princess Inc. at par. The bonds pay 6% laterest annually on June 30. The bonds mature on 30 June 20X9. King has a lune 30 yearend. At 30 June 20x3, King assessed that the credit risk of the Princess bonds had significantly increased and that the expected credit losses were estimated to be $22,000. 4 marks Required: 1. Prepare journal entries for fiscal 20x3 related to these bonds 2. At 30 June 20X4, King assessed that the Princess bonds were now credit-Impaired due to an adverse change in technology within Princess's industry. The present value of the estimated future cash flows was $425,000. Prepare the journal entries for 20X4. 1. Given the facts in requirement 2, prepare the journal entry to recognize interest revenue for 20X5. 4 marks 3 marks Requirement 1 ACCOUNT DESCRIPTION DEBIT CREDIT